Getting our hands on a meaningful loan – one that can make a real difference to our financial situation – is not the simplest thing when we have bad credit scores to our name. The perceived risk involved in lending to us is what makes traditional lenders nervous. Well, the good news is that applications for a $15,000 personal loan for bad credit management purposes are different to others.
Lenders do not like to think the funds a borrower has taken from them will be spent frivolously. So, there is a major difference between seeking a $15,000 loan and a $15,000 loan for the express propose of dealing with debts and bad credit issues. Granting approval to clear debts makes sense to them.
But there is never a guarantee of approval, so even with the best intentions, it is important to meet criteria and satisfy conditions. That is why it is worth enhancing your application in simple ways to increase the chances of securing a personal loan.
Making Sure Of Qualification
As already mentioned, it would be foolish to think that getting a $15,000 personal loan for bad credit improvement is going to be a walk in the park. Applicants still need to qualify for these loans, and there is a need to prove that the repayments would not be too much to handle either.
Of course, there is nothing new to qualifying for a loan, with applications needing to be 18 or more, be either a US citizen or be legally entitled to reside in the US, and they must prove they have a reliable source of income. In fact, most lenders now set a condition that the applicant be employed full-time for at least 6 months before applying.
Seeking loan approval to clear debts is an impressive purpose in the eyes of any lender, but be aware that only if the loan is affordable will approval be granted. For this to be proven, existing debts need to be low, and for the personal loan repayments to keep the overall debt obligations within the 40:60 debt-to-income ratio.
Improving Your Rating
The challenge of securing a $15,000 personal loan (for bad credit borrowers especially) is to show the repayments are affordable. The debt-to-income ratio is significant in that, but a core part of improving that ratio is actually in improving your credit rating.
Accomplishing both comes down to clearing some of your debts. Each debt that is paid off results in the credit score being increased, while the fact that debt is gone means an improvement in the debt-to-income ratio, with extra cash freed up in the process. Taking out a small loan – perhaps a payday loan of $500 – can make a difference.
Of course, while seeking approval to clear debts may be a good reason in the first place, the chance of lowering the size of the monthly repayments, and making the larger personal loan affordable, is too good to ignore.
Offer Some Security
The best possible move to make when trying to secure a $15,000 personal loan for bad credit improvement is to provide some security. This is usually thought to mean collateral, but it may be difficult to find an item worth that sum to offer as collateral.
A better option is to provide a cosigner, someone who is willing to guarantee the monthly repayments and step in to make them in the event the borrower is unable to. Lenders love cosigners as it removes the risk of default, so whether seeking loan approval to clear debts or anything else, the green light is certain.
However, just make sure the person nominated for the role has an excellent credit history and an income that can meet personal loan repayments if it becomes necessary.